SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Information of Location and Fair Value of Derivative Financial Instrument Included in Consolidated Statement of Financial Positions |
The following table provides information of location and fair value
of derivative financial instrument included in our consolidated
statement of financial positions as of December 31, 2016.
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Particulars
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Nominal
Amount |
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Fair Value of derivative
and
location on statement of
financial position as on
31st December 2016 |
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Gain/(loss) on fair
value |
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Effective |
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Ineffective |
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(In thousands) |
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Cash flow Hedge
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Deferred Income
Taxes and Other
non-current
assets |
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Other
current
assets |
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Pay fixed Interest rate swap
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$300
Million |
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$ |
503 |
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$ |
30 |
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$ |
533 |
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— |
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| Net Gains (Losses) Recorded in Other Income and Consolidated Statements of Income (Expense), Net Relating to Foreign Exchange Contracts Not Designated as Hedges |
The following table presents the net gains (losses) recorded in
other income relating to the foreign exchange contracts not
designated as hedges for the periods ending December 31, 2016,
2015 and 2014.
Gains (Losses) recognized in other income,net:
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2016 |
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2015 |
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2014 |
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(In
thousands) |
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Gains/(Losses) recognized in other income, net
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$ |
— |
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$ |
— |
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$ |
3,836 |
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| Change in Balances of Accumulated Comprehensive Income (Loss) |
The change in balances of accumulated comprehensive loss for the
year ended December 31, 2016 is as follows:
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(In
thousands) |
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Foreign
Currency
Translation
Adjustments |
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Unrealized
Gains (losses)
on Securities |
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Defined
Benefit
Pension
Plans |
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Unrealised
gain on
derivatives
designated
as cash flow
hedge |
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Accumulated
Other
Comprehensive
Loss |
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Beginning balance
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$ |
(235,146 |
) |
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$ |
332 |
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$ |
(795 |
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$ |
— |
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$ |
(235,609 |
) |
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Other comprehensive income (loss)before reclassifications
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(19,064 |
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161 |
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(525 |
) |
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322 |
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(19,106 |
) |
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Amounts reclassified from accumulated other comprehensive
(loss)income
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— |
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(165 |
) |
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(25 |
) |
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— |
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(190 |
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Net current-period other comprehensive (loss)/income
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$ |
(19,064 |
) |
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$ |
(4 |
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$ |
(550 |
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$ |
322 |
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$ |
(19,296 |
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Ending balance
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$ |
(254,210 |
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$ |
328 |
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$ |
(1,345 |
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$ |
322 |
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$ |
(254,905 |
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The change in balances of accumulated comprehensive loss for the
year ended December 31, 2015 is as follows:
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(In
thousands) |
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Foreign
Currency
Translation
Adjustments |
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Unrealized
Gains
(losses) on
Securities |
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Defined
Benefit
Pension
Plans |
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Accumulated
Other
Comprehensive
Loss |
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Beginning balance
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$ |
(189,410 |
) |
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$ |
4,600 |
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$ |
(1,434 |
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$ |
(186,244 |
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Other comprehensive income (loss)before reclassifications
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(45,736 |
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50 |
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524 |
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(45,162 |
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Amounts reclassified from accumulated other comprehensive income
(loss)
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— |
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(4,318 |
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115 |
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(4,203 |
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Net current-period other comprehensive income (loss)
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$ |
(45,736 |
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$ |
(4,268 |
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$ |
639 |
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$ |
(49,365 |
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Ending balance
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$ |
(235,146 |
) |
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$ |
332 |
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$ |
(795 |
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$ |
(235,609 |
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The change in balances of accumulated comprehensive loss for the
year ended December 31, 2014 is as follows:
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(In
thousands) |
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Foreign
Currency
Translation
Adjustments |
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Unrealized
Gains
(losses) on
Securities |
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Defined
Benefit
Pension
Plans |
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Accumulated
Other
Comprehensive
Loss |
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Beginning balance
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$ |
(157,416 |
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$ |
3,808 |
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$ |
(695 |
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$ |
(154,303 |
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Other comprehensive income (loss) before reclassifications
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(28,994 |
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3,853 |
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(758 |
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(25,899 |
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Amounts reclassified from accumulated other comprehensive income
(loss)
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— |
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(3,061 |
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19 |
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(3,042 |
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Out-of-period adjustment
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(3,000 |
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— |
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— |
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(3,000 |
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Net current-period other comprehensive income (loss)
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$ |
(31,994 |
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$ |
792 |
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$ |
(739 |
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$ |
(31,941 |
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Ending balance
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$ |
(189,410 |
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$ |
4,600 |
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$ |
(1,434 |
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$ |
(186,244 |
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| Reclassifications out of Accumulated Other Comprehensive Income (Loss) |
Reclassifications out of accumulated other comprehensive income
(loss) for the year ended December 31, 2016 is as follows:
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(In
thousands) |
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Details about Accumulated Other Comprehensive Income (loss)
Components
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Affected
Line Item
in the
Statement
Where Net
Income Is
Presented |
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Before
Tax
Amount |
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Tax (expense)
Benefit |
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Net of Tax |
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Unrealized gains on available for sale securities realized in
current year
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Other
income,
net |
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$ |
(248 |
) |
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$ |
83 |
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$ |
(165 |
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Amortization of prior service cost included in net periodic pension
cost
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Cost of
revenues |
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$ |
(35 |
) |
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$ |
10 |
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$ |
(25 |
) |
Reclassifications out of accumulated other comprehensive income
(loss) for the year ended December 31, 2015 is as follows:
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(In
thousands) |
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Details about Accumulated Other Comprehensive Income
(loss)Components
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Affected
Line Item
in the
Statement
Where Net
Income Is
Presented |
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Before
Tax
Amount |
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Tax (expense)
Benefit |
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Net of
Tax |
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Unrealized gains on available for sale securities realized in
current year
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Other
income,
net |
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$ |
(6,580 |
) |
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$ |
2,262 |
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$ |
(4,318 |
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Amortization of prior service cost included in net periodic pension
cost
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Cost of
revenues |
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$ |
149 |
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$ |
(34 |
) |
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$ |
115 |
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Reclassifications out of accumulated other comprehensive income
(loss) for the year ended December 31, 2014 is as follows:
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(In
thousands) |
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Details about Accumulated Other Comprehensive Income
(loss)Components
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Affected Line
Item in the
Statement Where
Net Income Is
Presented |
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Before
Tax
Amount |
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Tax (expense)
Benefit |
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Net
of Tax |
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Unrealized gains on available for sale securities realized in the
current year
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Other income,
net |
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$ |
(4,555 |
) |
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$ |
1,494 |
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$ |
(3,061 |
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Amortization of prior service cost included in net periodic pension
cost
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Cost of
revenues |
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$ |
29 |
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$ |
(10 |
) |
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$ |
19 |
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| Total (Tax) Benefit on Other Comprehensive Income (Loss) |
Total tax (expense) benefit on other comprehensive income (loss)
for the years ended December 31, 2016, 2015 and 2014 is as
follows:
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2016 |
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2015 |
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2014 |
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(In
thousands) |
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Tax expense on Foreign currency translation adjustments
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$ |
(46 |
) |
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$ |
(308 |
) |
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$ |
(337 |
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Tax expense on unrealized gains on securities
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2 |
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2,196 |
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(430 |
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Tax (expense) benefit on defined benefit pension plans
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287 |
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(312 |
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379 |
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Tax expense on cash flow hedge
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(211 |
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— |
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— |
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Total (taxes )benefit on other comprehensive income (loss)
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$ |
32 |
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$ |
1,576 |
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$ |
(388 |
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| Schedule of Estimated Useful Lives |
Depreciation is computed primarily using the straight-line method
over the estimated useful lives as follows:
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Years |
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Office building
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30 |
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Residential property
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20 |
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Computer equipment and software
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3 |
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Furniture, fixtures and other equipment
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5-7 |
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Vehicles
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3-5 |
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Leasehold improvements
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Shorter of economic life or life
of lease |
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Leasehold land
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Shorter of economic life or life
of lease |
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| Interest Rate Swap | Cash flow Hedge |
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| Net Gain (Losses) Recorded in Accumulated Other Comprehensive (Loss) Income |
The following table present the net gains (losses) recorded in
accumulated other comprehensive (loss)income relating to the
interest rate swap contract designated as cash flow hedges for the
period ending December 31, 2016, 2015 and 2014.
Gains (losses) on derivatives
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2016 |
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2015 |
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2014 |
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(In
thousands) |
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Gains/ (losses) recognized in other comprehensive income (loss)
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$ |
533 |
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$ |
— |
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$ |
— |
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| Foreign Exchange Contract | Net Investment Hedging |
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| Net Gain (Losses) Recorded in Accumulated Other Comprehensive (Loss) Income |
Gains (losses) on derivatives
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2016 |
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2015 |
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2014 |
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(In
thousands) |
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Gains/ (losses) recognized in other comprehensive income (loss)
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$ |
— |
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$ |
— |
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$ |
724 |
* |
| * |
for and up to three months ended
March 31, 2014. |
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